National Republican., 1887-05-24
CO-OPERAlION OF LABOR.
INTERVIEW WITH SENATOR LELAND
STANFORD.
Reasons why the LaborinE Man should
tie His own Empioyer DelnStN"
Theories About the distribution of
Wealth.
New York Tribune ]


Senator Stanford explained the objects to
be attained by the billrecently introduced
by himself In the Senate Of the United
States, with reference to the formation OF
co operative associations, substantially as
follows:
"Ihe great advantage to labor arising out
Of the co operative effort aud relation has
been apparent to me for many years. From
nv earliest acquaintance with hcscence on
political economy, It has been evident TO
my mind that capital was the pronuct oi
labor, and that therefore In Its best analy.
sis there could he no natural conflict be
tween capital aud labor because there
could he no antagOuism between cause aud
effect, between effort and the result OF
effort; and since capital Is the product of
labor, there could he no conflict between
labor and its product Keeping this funda.
mental principle IN view, II IL obvious that
the seeming autagOnism between capital
and labor is the result of deceptive ap-
pearance. have always been fully
persuaded that through co operation
labor could become its own
employer. The investment aud employ
ment Of capital are dependent entirely upon
the product of the labor employed by it,
All active capital is merely capital employ
ing labor. 1t is out of the product OF labor
so employed that cauital Is rewarded. Cap.
ital invested in manner not to require the
employment Of labor Is dead or Idle capi.
tai. Money invested In land where the
land Is not cultivated, or In buildings which
are untenanted, is as idle as II the gold
and silver invested in them had never been
mined bu. all capital employed in manu-.
factures, In agriculture, In commerce, in
arts, In transportation, is active capital,
ana It is sustained and supported in activity
,.,l,, III, @ tI,n, ,f hn lahn itnp
plays. Labor and capital, thus associated, +,
tnen create all the reward which inures to
them.
"All things have value only in proper
tion TO their Susceptibility of becoming
valuable by the addition of labor. The ore
In the mine has value only because of its
capability OF being converted, by the appli-
cation of labor under the direction OF the
enterprise, into things useful to man. Land
is valuable only In proportion as 1t is capa.
BILE of yielding to the labor expended upon
1t a large return In the way of products
adapted to supply human wants. The
value OF everything In the way of raw or un-
wrought material depends entirely upon its
susceptibility of being converted into prop
erty, and the conversion OF the original raw
materials into property, In the way o
wares, merchandise, fabrics, or works o.
art, resides wholly in their capability, unde
the manipulation of labor, Of being so con
vcrted.
LABOR THE CREATOR OF CAPITAL.
"Thus again we find the wealth of th
world to be in the product of labor. Labo
is the creator of capital, and capital is ii
the nature of stored up force. 1t Is lik
the balance wheel of an engine, which ha
no motion that has not been impaired to it
but II is reservoir Of force which will per
pe;uate the motion of the machinery afte
the propelling power has ceased. maj
takes few thousand dollars OF capital
builds workshop, buys raw materia
advantageously, and engages hundred
workmen to manufacture boots and shoes
This is the foundation of enterprise Th,
employer of labor is benefactor. Tn
great majority OF mankind do not originat
employments for themselves. They eithe
have not the disposition or the ability Il
so originate and direct their own employ
ment. Whatever may be the fault, It |
true that the ajorty of mankind are EN-
ployed by the minority. Capital directe
by intelligent enterprise is q vast benefacto
to man. The man who through other
makes to grow two blades Of grass wher
but one grew before is a beneractor to mar
kind in the largest sense, but suppose tina
each Of the 100 workmen employed pre-
duce in excess of his wages the value of :
day. One dollar day for each aggrt
gated gives 800 per day to the employe
The profit to the employer then is 800 pc
day.
;.In the aggregate the 100 men employed
by associating their effort and their credi
and possibly their capital could comman
suilciency Of that reserve force which W
call capital to build the shop and purchas
the material with which to start busines
II they do not possess the capital In th
aggregate, | am fully persuaded that lC
industrious, sober, skillful mechanic
agreeing to combine their labor, industry
and intelligence, would possess sullicieI
credit to command the capital nece:
sar,' to lay the foundation of enterpris
AS between this outline of cooperation an
the old system of permitting labor to
hired aud directed by one who in the pros
cution of beneficial enterprise originate
employment for these one hundred me
there is II difference in favor OF co operatio
Of 800 day that amount being the pr
MUM which the one hundred men used
this illustration would pay TO some one ell
for originating their employment and d
recting their skill.
at should be born in mind that the labC
employed not only creates its own wag,
but creates the premium which the ente
prising proprietor receives for originatI
the employment. Viewed from this stan
point, there is a sense in which the lab
so co operating is hiring an employer-th
is, it is paying premium to enterprise
originate and direct its employment Car
tai is paramount and labor subordina
only because labor consents, and volunt
rily, TO that form Of organization In o
industries which produces that resu
The value Of cooperative effort has h,
many practical illustrations, some Of whi,
have come under my observation.
COOPERATION IN MINING.
"In the early history of mining in Ca
fornia some Of the largest and most prot
able mining enterprises We're projected al
carried on by association alone. A lari
number OF men possessed Of product
capacity, but without capital, combined
cooperative relation an energy and ahl!
equal to the accomplishment of the wo
In hand. The work to be done required
they contributed to a common fund, as
were, laboring capacity equ
to the work to be accOl
plshed. II these enterprises hl
been projected by single capitalist, I
first step would have been TO engage
amount OF labor necessary to the acco
plshment of the work--that is, TO purchG
the labor. Instead, therefore, of selling I
labor TO a single farsighted aud enterpr
ing employer, these men contributed
subscription the amount Of labor requir
to be performed, The work accomplish
In this way gave all the result attained
the labor expended upon II.
"undertakings of great magnitude q
more profitable than the more incOnsid,
able enterprises, because the greater und
takings require greater aggregatiOns
capital, and the possession Of large capt.
is enjoyed by but few. Fewer persons
ing able TO engage in the larger enterprls
the profit is consequently increased, The
Is no undertaking open to capital, howe1
great the amount involved, that is I
accessible to a certain amount Of lat
voluntarily associated and intellgen
directing its own effort. When an indy